Correlation Between JNS Holdings and Agrify Corp
Can any of the company-specific risk be diversified away by investing in both JNS Holdings and Agrify Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JNS Holdings and Agrify Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JNS Holdings Corp and Agrify Corp, you can compare the effects of market volatilities on JNS Holdings and Agrify Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JNS Holdings with a short position of Agrify Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNS Holdings and Agrify Corp.
Diversification Opportunities for JNS Holdings and Agrify Corp
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between JNS and Agrify is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding JNS Holdings Corp and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp and JNS Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JNS Holdings Corp are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of JNS Holdings i.e., JNS Holdings and Agrify Corp go up and down completely randomly.
Pair Corralation between JNS Holdings and Agrify Corp
Given the investment horizon of 90 days JNS Holdings is expected to generate 115.28 times less return on investment than Agrify Corp. But when comparing it to its historical volatility, JNS Holdings Corp is 3.02 times less risky than Agrify Corp. It trades about 0.02 of its potential returns per unit of risk. Agrify Corp is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Agrify Corp on August 30, 2024 and sell it today you would earn a total of 5,136 from holding Agrify Corp or generate 1610.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JNS Holdings Corp vs. Agrify Corp
Performance |
| Timeline |
| JNS Holdings Corp |
| Agrify Corp |
JNS Holdings and Agrify Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNS Holdings and Agrify Corp
The main advantage of trading using opposite JNS Holdings and Agrify Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNS Holdings position performs unexpectedly, Agrify Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agrify Corp will offset losses from the drop in Agrify Corp's long position.| JNS Holdings vs. Digital Locations | JNS Holdings vs. Orion Group Holdings | JNS Holdings vs. Vinci SA ADR | JNS Holdings vs. Agrify Corp |
| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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